E Ink posted impressive second-quarter results, which it said are the strongest in the company’s history, Taipei Times reported. E Ink attributed the performance to robust demand for color e-reader devices, E Ink tablets, and Electronic Shelf Labels (ESLs). Consolidated revenue for the second quarter stood at NT$10.626 billion (US$354 million), which makes for a 39 percent year-on-year increase. Operating profit improved by 166 percent to NT$4.202 billion.
All of this has led to a 47 percent surge in net profit attributable to the parent company. It stood at NT$2.972 billion, which translates to NT$2.58 earnings per share. Gross profit margin for the company stood at more than 60 percent, which in itself is a considerable improvement over last year. E Ink said they relied on an improved product mix, automation, and AI-driven efficiency gains instead of price adjustments to achieve higher profitability.
E Ink further stated all its production lines are running at full capacity, but it is still struggling to meet market demand. This has led to a supply-demand imbalance, which means there is less pressure to lower prices. The company’s fifth production line (H5) is expected to enter mass production this quarter. It had earlier faced delays owing to technical bottlenecks.
Plans are already in advanced stages for setting up a sixth line (H6), which the company hopes will be in place by 2026, with production expected to begin by early 2027. E Ink is also advancing construction of its Guanyin plant in Taoyuan, which will be manufacturing electronic paper and flexible materials. E Ink is also expanding its R&D operations in San Jose, California. It is also contemplating setting up a pilot production line to support material development and small-scale manufacturing.
However, market sentiment in the consumer electronics segment is more cautious, even though E Ink said its IoT business is thriving thanks to continued support from major clients such as Walmart. The Chinese education market has softened, and some e-reader customers are adopting a wait-and-see approach amid concerns over U.S. tariffs. Apart from these, seasonal slowdowns in demand for ESL are also expected in Q4.
E Ink forecasts that Q2 is going to be the peak quarter for 2025, with revenue set to ease slightly in the second half of the year. That said, management believes things are going to bounce back in early 2026, driven by increased adoption of color e-paper displays.
